The stability tightrope: balancing political and economic factors for tourism business development in Thailand

Vito Bobek, Kevin Steigenberger and Tatjana Horvat

International Journal of Diplomacy and Economy, 2026, vol. 12, issue 2, 234-268

Abstract: The paper examines the political and economic stability interplay in Thailand's tourism sector and its businesses. Combining theory and interviews, it explores how stability factors affect tourism, prompting strategic responses from enterprises. Findings suggest political stability is critical, especially for international visitors, as unrest disrupts travel. Economic stability in Thailand and tourist source countries also influences travel behaviour. A weaker Thai baht, potentially hinting at economic challenges, can attract visitors by lowering travel costs. Enterprises mitigate these risks through cost-saving measures, market diversification, and enhanced marketing strategies. The importance of sustainability and digital transformation for competitiveness is also highlighted. Despite past and present instability, Thailand's tourism industry demonstrates resilience and a strong likelihood of continued growth. This resilience is attributed to strategic government support and Thailand's enduring appeal as a tourist destination. The paper concludes by emphasising the need for flexible policies and solid legislative frameworks to ensure continued growth and competitiveness in a shifting environment.

Keywords: political stability; economic stability; tourism; Thailand; crisis management; tourism enterprises; tourism resilience. (search for similar items in EconPapers)
Date: 2026
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Persistent link: https://EconPapers.repec.org/RePEc:ids:ijdipe:v:12:y:2026:i:2:p:234-268

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